Although the benefits of e-procurement are many, it is very important that companies should understand the partnership between suppliers and focus on types of goods, services and technology that suit e-procurement implementation. Any problem faced in managing the supply chain would diminish the potential benefit of e-procurement for the organization. The real challenge lies in developing an overall e-procurement plan that matches the organization's requirements. This article presents an overview of the e-procurement process and its impact and challenges for the business.

The Internet has changed significantly the way organizations manage their supply chain. Supply chain management deals with buyers and suppliers.

The problem that arises in supply chain is the unavailability of correct information at the required time. Internet has made it possible for the information to be available at the right time and right place and in a cost effective way. The growth of web-based information transfer between companies, suppliers and their customers has become vital for creating an effective supply chain. Electronic marketplaces are becoming a critical infrastructure for web-enabled organizations. These marketplaces are being targeted by companies to gain competitive advantage, thus making e-business popular among consumers. The increased popularity of e-business, especially among organizations is due to the decrease in operational cost, and subsequent increase in Return-on-Investment (ROI) resulting from reduced paper transactions, shorter order cycle time, and inventory reduction due to speedy transmission of order related information.

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